Housing weakness as May prices fall

House prices across the UK fell by half a per cent in May, the Department for Communities and Local Government (DCLG) said yesterday, confirming the continued weakness in the housing market.

Prices were down 1.6 per cent over the year. In England, house prices were down 1.3 per cent, while Wales saw a 6.1 per cent decline. In Scotland, house prices fell by 2.5 per cent over the year.

The result was that the average price of a home stood at £203,528. The DCLG report also showed that the prices paid by first-time buyers were on average 2.1 per cent lower than last year.

Prices paid by former owner-occupiers were also lower, but by less, declining by an average of 1.4 per cent against a year earlier.